Total investment into the UK’s build-to-rent (BTR) sector exceeded £5bn in 2024 for the first time ever in a single year, according to the latest research from Knight Frank.
The £5.2bn of investment activity was 11% up on 2023 and marked the fifth consecutive record year for investment. The full-year figures were bolstered by significant activity in Q4 when 23 deals totalling £1.9bn transacted.
Multifamily accounted for 59% of total investment activity, followed by single-family housing (SFH) (36%) and co-living (5%).
Investors committed £1.8bn to acquire or fund almost 6,000 SFH houses to rent in 2024, representing 36% of total BTR investment by value. While SFH currently accounts for 11% of completed BTR homes in the UK, it represents 22% of the under-construction pipeline.
Lizzie Breckner, head of BTR research at Knight Frank, said: “The strong levels of investment into single-family housing have the potential to change the composition of the overall BTR market, which remains strongly weighted towards multifamily stock.”
North American capital outstripped UK domestic investment for the first time, reaching a record £2.8bn. Overall, cross-border spend increased 51% year-on-year in 2024, accounting for 66% of total investment.
Nick Pleydell-Bouverie, head of residential investment at Knight Frank, said: “Despite the challenging macro-economic backdrop, 2024 has been a record year for investment and delivery in UK’s build-to-rent sector. The unparalleled level of investment we’ve seen in 2024 clearly demonstrates the continued confidence in the market, as well as the diversification opportunities offered by the sector. In particular, the surge in North American capital highlights the UK’s position as an attractive market for global investors.
“The record £5.2bn investment in 2024 marks a watershed moment for UK build-to-rent. With North American capital leading cross-border investment and the rapid growth of single-family housing, we’re seeing the sector growing and diversifying at pace. While the challenge of meeting energy efficiency standards remains significant, the robust investment appetite and expanding operational stock demonstrate that BTR is establishing itself as a cornerstone of the UK residential market.”
